Canadian dollar declines against greenback, crude oil prices higher

TORONTO — The Canadian dollar moved slightly lower late morning Friday near the end of a week that has seen huge swings in the currency reflecting the volatility on stock markets.

The currency slipped 0.13 of a cent to 101.05 cents US.

The loonie has been caught up amid panic selling on financial markets over the last three weeks as pessimism deepened about a comprehensive fix for the European debt crisis and growing worries that the U.S. economy is slipping back into recession.

It is down sharply from a recent high of 106 cents US.

The currency earlier found some support from higher oil prices as the September crude contract on the New York Mercantile Exchange rose 38 cents to US$86 jumping almost US$3 on Thursday.

Copper prices were unchanged while the December gold contract on the Nymex fell further from Wednesday’s latest record close, down $14.20 to US$1,737.30.